Panera Bread 2012 Annual Report Download - page 38

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A summary of our cash flows, for the periods indicated, are as follows (in thousands):
For the fiscal year ended
Cash provided by (used in): December 25,
2012 December 27, 2011 December 28, 2010
Operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 289,456 $ 236,889 $ 237,634
Investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (195,741) $ (152,194) $ (132,199)
Financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (19,214) $ (91,354) $ (122,536)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . $ 74,501 $ (6,659) $ (17,101)
Operating Activities
Cash flows provided by operating activities in fiscal 2012 primarily resulted from net income, adjusted for non-cash items such
as depreciation and amortization, stock-based compensation expense, deferred income taxes, tax benefit from exercise of stock
options, and an increase in accrued expenses and deferred rent, partially offset by an increase in trade and other accounts receivable,
net, prepaid expenses, and a decrease in accounts payable. Cash flows provided by operating activities in fiscal 2011 primarily
resulted from net income, adjusted for non-cash items such as depreciation and amortization, stock-based compensation expense,
deferred income taxes, tax benefit from exercise of stock options, and an increase in accrued expenses, accounts payable, deferred
rent, and other long-term liabilities, partially offset by an increase in trade and other accounts receivable, net, prepaid expenses,
and inventories. Cash flows provided by operating activities in fiscal 2010 primarily resulted from net income, adjusted for non-
cash items such as depreciation and amortization, stock-based compensation expense, deferred income taxes, tax benefit from
exercise of stock options, and an increase in accrued expenses and other long-term liabilities, partially offset by an increase in
trade and other accounts receivable, net and prepaid expenses.
Investing Activities
Capital Expenditures
Capital expenditures are the largest ongoing component of our investing activities and include expenditures for new bakery-cafes
and fresh dough facilities, improvements to existing bakery-cafes and fresh dough facilities, and other capital needs, which include
investments in technology infrastructure. A summary of capital expenditures for the periods indicated consisted of the following
(in thousands):
For the fiscal year ended
December 25,
2012 December 27, 2011 December 28, 2010
New bakery-cafe and fresh dough facilities . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81,758 $ 63,021 $ 42,294
Bakery-cafe and fresh dough facility improvements . . . . . . . . . . . . . . . . . . . 42,644 30,858 27,009
Other capital needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,926 14,053 12,923
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 152,328 $ 107,932 $ 82,226
Our capital requirements, including development costs related to the opening or acquisition of additional bakery-cafes and fresh
dough facilities and maintenance and remodel expenditures, have been and will continue to be significant. Our future capital
requirements and the adequacy of available funds will depend on many factors, including the pace of expansion, real estate markets,
site locations, and the nature of the arrangements negotiated with landlords. We believe that cash provided by our operations and
available borrowings under our existing credit facility will be sufficient to fund our capital requirements in both our short-term
and long-term future. We currently anticipate $175 million to $200 million of capital expenditures in fiscal 2013.
Business Combinations
We used approximately $48.0 million, $44.4 million, and $52.2 million of cash flows for acquisitions, in fiscal 2012, 2011, and
2010, respectively. In fiscal 2012, we acquired substantially all the assets and certain liabilities of 16 bakery-cafes from our North
Carolina franchisee. In fiscal 2011, we acquired substantially all the assets and certain liabilities of 25 bakery-cafes from our
Milwaukee franchisee and an additional five bakery-cafes from our Indiana franchisee. In fiscal 2010, we acquired a controlling
interest in certain assets, liabilities, and the operations of three bakery-cafes in Ontario, Canada from our Canadian franchisee in
a non-cash transaction. We subsequently acquired the remaining noncontrolling interest in the three bakery-cafes on December